Historically, mortgage interest rates have experienced a wide range of fluctuations. The perception of whether a 6 percent interest rate is considered "good" from a historical perspective depends on the timeframe and economic context.
Here are some considerations:
High Inflation Periods (1970s): In the 1970s, during a period of high inflation, mortgage rates were much higher than 6 percent. Double-digit interest rates were not uncommon. Therefore, compared to that historical context, a 6 percent rate would have been relatively low.
Post-2008 Financial Crisis: In the years following the 2008 financial crisis, interest rates were historically low, often below 4 percent. During this period, a 6 percent interest rate would have been considered high.
Long-Term Historical Averages: If we look at long-term historical averages, mortgage rates have generally been higher than what was observed in the post-2008 period but lower than the peaks seen in the 1970s.
It's important to note that historical context is crucial, and what may be considered a "good" rate can vary based on economic conditions. In January 2022, interest rates were relatively low. However, for the most accurate historical comparison, you may want to consult historical mortgage rate data or speak with financial experts who can provide insights into long-term trends.